Relay Protocol issued warnings about scam tokens on Robinhood Chain after reports of wallet drains targeting traders. The Arbitrum-based Ethereum layer-two network launched on July 1, 2026, and has seen high scam meme coin activity due to its permissionless deployment structure. The scam tokens use honeypot contract logic that allows purchases but prevents sales or automatically transfers funds to attackers, with Relay Protocol stating it is actively blocking these malicious contracts as they appear.
Honeypot Tokens Allow Purchases But Block Sales
The honeypot scam functions by allowing users to buy tokens while hardcoding rules that prevent victims from selling or automatically transfer funds to the attacker's wallet. One user reported a specific trick involving a hidden storage mapping in a token contract that bypasses standard ERC-20 security checks to drain assets without user approval. A user named Milo stated on X, "I was also scammed by a token called World." Another user warned in the thread, "Goodness people check the damn contract before aping into a token." Some users said the scam tokens started becoming prominent "a few days ago."
Relay Protocol clarified on X that these incidents do not represent a widespread wallet compromise or an infrastructure breach within Relay. The platform stated, "Your private keys and other balances remain secure, as the sophisticated scam logic is contained strictly within the malicious token contract itself." The protocol added, "There's been an increase in scam tokens designed to remove themselves after purchase. If you bought one, the funds you spent are unfortunately gone. We're blocking these tokens as they show up and verifying safe ones."
Scam Pattern Follows New Chain Launch Trend
Robinhood Chain is an Arbitrum-based Ethereum layer-two network that launched on July 1, 2026, with focus on tokenized stocks and decentralized finance. The permissionless nature of the network has allowed bad actors to deploy fraudulent tokens at scale. Early onchain activity has been heavily saturated with fake tokens and meme coins alongside legitimate stock-token projects, creating an environment where scammers can exploit inexperienced traders.
The issue is described as an old scam tactic applied to a new chain seeing lots of activity, with some activity being a swarm of bad actors leveraging the hype. This trend has been seen during the onset of other layer-one and layer-two chains and is not unique to Robinhood Chain, but visibility is due to the network's recent launch and surrounding hype. Robinhood Chain is seeing legitimate volume, but amid this trend, scammers are reportedly preying on unknowing victims trading coins.
Relay Protocol Recommends Token Verification and Test Swaps
Relay Protocol advises users to stick strictly to tokens verified by trusted sources. To mitigate risk, traders should check the contract address for legitimacy and perform a test swap with a negligible amount of capital before committing larger sums. If a token displays unusual market behavior, such as heavy buying pressure with zero selling activity, it is a significant red flag that the asset may be a honeypot. Relay is actively filtering bad contracts as they appear.
FAQ
What did Relay Protocol warn about on Robinhood Chain?
Relay Protocol warned about an increase in scam tokens designed to remove themselves after purchase on Robinhood Chain, stating it is actively blocking these tokens as they appear and verifying safe ones.
How do honeypot scam tokens work on Robinhood Chain?
Honeypot tokens allow users to buy the token while hardcoding rules that prevent victims from selling or automatically transfer funds to the attacker's wallet, with some using hidden storage mappings that bypass standard ERC-20 security checks.
What safety measures does Relay Protocol recommend for traders?
Relay Protocol advises traders to stick to verified tokens, check contract addresses for legitimacy, and perform test swaps with negligible amounts before committing larger sums to protect against scam tokens.
